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The state of Washington says Quicken Loans sent deceptive mailings with loan offers to veterans and service members.

Quicken Loans is facing a potential $500,000 fine from the state of Washington over a claim that the loan company targeted military veterans and service members with deceptive advertisements for mortgages.

The state's Department of Financial Institutions claims the Detroit-based mortgage giant sent direct mailings last year to veterans and service members in Washington that had deceptive and misleading statements, including a "bait and switch" tactic for mortgage loans that would be originated by Quicken and guaranteed by the U.S. Department of Veterans Affairs.

According to the complaint, Quicken sent the mailings to about 3 million consumers nationwide, including more than 35,000 in Washington. Quicken Loans says it is the nation's largest lender of VA loans.

In total, 13 violations of Washington state's Consumer Loan Act are alleged in the notice of intent to file a cease-and-desist against Quicken and order the company to pay a $500,000 fine, plus administrative costs.

Quicken Loans spokesman Aaron Emerson said Friday that the lender intends to file an official response to Washington state's allegations.

"While we strongly disagree with several aspects of the State of Washington's assertions and will address each of them in response to their statement, Quicken Loans has proactively taken steps to ensure all mailings reflect our brand and quality standards," Emerson said in a statement.

"As the recipient of five consecutive J.D. Power awards for client satisfaction since 2010, we hold the trust of all military veterans, and all of our clients, in the highest regard and have taken extra steps to ensure that all client communication is as clear and straightforward as possible."

The Washington complaint is separate from the recent U.S. Justice Department lawsuit against Quicken Loans concerning hundreds of Federal Housing Administration loans made between September 2007 and December 2011 that federal officials claim were improperly underwritten to generate fees and get otherwise unqualified Quicken clients into government-backed mortgages.

Quicken Loans denies the Justice Department allegations, which it says are aimed at extracting a "nine figure" settlement from the company that has grown from a mid-tier to a major player in the U.S. mortgage industry.

In the Washington state complaint, Quicken is accused of sending mailings to veterans and service members that didn't clearly disclose that the VA loans were "5/1" adjustable rate mortgages with an interest rate that would fluctuate after five years.

The mailings also advertised an initial five-year fixed rate without disclosing that the borrower would have to "buy down" to get to that rate, the complaint says. The alleged "bait and switch" involved advertising loan terms that in fact were only available to consumers with an income of $8,000 a month.

The complaint said the mailings also used official-looking emblems designed to resemble those of the VA, including an eagle surrounded by a circle of states and the phrase "Governed By: United States Veterans Department."

And they "created a false sense of urgency" by pressing recipients to contact Quicken to meet a "response required by" date, the complaint said.

Quicken says it has originated more than 125,000 VA loans in the last five years, including over 3,000 in the state of Washington.